West Africa Civil Society Institute (WACSI);
Micro, Small and Medium Enterprises (MSMEs) are major drivers of socio-economic transformation in both the industrialised and developing world. According to estimates by the International Council for Small Business (ICSB), they make up over 90% of business globally, 60% of global employment, and half of the Gross Domestic Product (GDP) of any economy. In Sub-Saharan Africa, Micro Small and Medium Enterprises account for over 95% of all business.. In Nigeria, many privately-run businesses are MSMEs. According to a recent national survey by the National Bureau of Statistics (NBS), there are a total of 41.5 million MSMEs in the country that provide 59.6 million Nigerians with employment – thereby making up over 85% of the national workforce. Citizens majorly drive these MSMEs at the bottom of the economic pyramid – many of whom start these enterprises as a means of survival. The rising unemployment rates in the country has further created a situation of rising inflation as well as the downsising of major corporations. As a result, the number of people going into business – mainly small and micro businesses as a means of survival continues to rise.
SeaChange Capital Partners;
The government distinguishes "large" from "small" organizations in many ways, though the most common is whether they have 500 or more employees. Nonprofits deemed "large" under this definition have been completely shut out of the two most important sources of COVID-19-related financial support: the SBA's Paycheck Protection Program ("PPP") and the Federal Reserve's Main Street Lending Program ("MSLP"). This is unfortunate because, while small nonprofits are collectively important, the large ones do most of the work.
This is true not only in higher education and hospitals, but in other areas that support the well-being of communities including: shelters, emergency food distribution, mental health, hospice, foster care, nursing homes, and caring for the developmentally disabled. These large nonprofits are systemically important partners to state and local governments, and many are on the front lines of the COVID-19 crisis. However, unless they receive immediate assistance, some will not make it through the next few months; few, if any, will survive without making drastic cuts to services that will be more vital than ever to our collective health, well-being, and safety during the COVID-19 crisis and its aftermath.
Given the pressure on their budgets, and the difficulties that states and cities have in raising immediate funds from taxes or the capital markets, only the federal government has the scale of available resources to help large nonprofits. Fortunately, there is no need to develop an entirely new program; PPP and MSLP can be modified to get the job done.